India to remain one of world's fastest-growing economies: SBI Research

India is poised to continue its trajectory as one of the world's fastest-growing economies, demonstrating remarkable resilience despite ongoing global and domestic challenges, according to a special report by SBI Research. The report, released in commemoration of India's 80th Independence Day, highlights a macroeconomic narrative characterized by strength and stability.

"India was. India is. And India will continue to be one of the fastest-growing economies in the world," SBI Research stated, underscoring the nation's economic prowess. The research firm projects real GDP growth at 8 percent for the first quarter of FY27. This optimism is bolstered by strong credit demand, which saw a 19.3 percent growth for the fortnight ending July 31, and a corresponding rise in bank deposit growth to 15.4 percent. The report also noted the significant impact of foreign currency inflows, with FCNR(B) deposits reaching USD 52.3 billion as of August 13.

The report further suggests that the strengthened deposit and foreign-currency funding position could positively influence the government securities market, particularly the 3-7 year and 7-10 year segments. A reversal in foreign portfolio investor flows, attributed to recent measures by the Reserve Bank of India and the government, also contributes to the optimistic outlook. Financial performance among listed non-BFSI companies in Q1 FY27 showed net sales, EBITDA, and profit after tax growing by 24 percent, 9 percent, and 4 percent, respectively.

Adding to the positive economic picture, the rural outlook has improved significantly. The nationwide monsoon deficit has narrowed to around 13 percent, with surplus rainfall in July and normal rains in August compensating for an earlier June deficit. Kharif sowing is only 2 percent below the previous year's level, indicating better irrigation coverage. The report also pointed to a 39 percent increase in taxpayers earning Rs 100 crore and above, reaching 576 in assessment year 2026, and a 14 percent rise in those earning Rs 1 crore and above, totaling 5.36 lakh. While celebrating the economy's resilience, SBI Research emphasized the continued need for credible and sustainable macroeconomic mechanisms.

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India was. India is. And India will continue to be one of the fastest-growing economies in the world.